Capital gains allocation: source state may tax gains from immovable property and PE assets; other gains taxed at residence. The treaty allocates capital gains taxation by property category and nexus: immovable property situated in a Contracting State may be taxed by that State; movable property forming part of a permanent establishment or pertaining to a fixed base may be taxed by the State where that permanent establishment or fixed base is situated; gains from alienation of ships or aircraft used in international traffic are taxable only in the alienator's State of residence; gains from shares of a resident company may be taxed in the company's residence; all other gains are taxable only in the alienator's State of residence.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains allocation: source state may tax gains from immovable property and PE assets; other gains taxed at residence.
The treaty allocates capital gains taxation by property category and nexus: immovable property situated in a Contracting State may be taxed by that State; movable property forming part of a permanent establishment or pertaining to a fixed base may be taxed by the State where that permanent establishment or fixed base is situated; gains from alienation of ships or aircraft used in international traffic are taxable only in the alienator's State of residence; gains from shares of a resident company may be taxed in the company's residence; all other gains are taxable only in the alienator's State of residence.
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